£6 billion drawn out by pensioners using new pension freedoms

Pensioners in the UK have taken £6 billion from their pension pots using new pension freedoms given to them by the former Chancellor George Osborne.

According to HMRC, 159,000 have accessed their pension savings since April, bringing the total past three quarters of a million people.

The Government has also announced plans to protect consumers by capping early exit fees, allowing earlier access to Pension Wise guidance, and working with the industry to introduce a pensions dashboard. In April 2015, the Government introduced what they said were the most significant pension reforms for a generation, giving people the ability to access their savings how and when they want.

The Government is extending the popular freedoms even further, giving millions more people the ability to sell income from their annuities from April 2017, subject to agreement from their annuity provider, on a so-called secondary annuities market.

The Economic Secretary to the Treasury, Simon Kirby, said: “It’s only right that people should have a choice over what they do with their money and today’s figures show that pension freedoms continue to be a popular choice.

“Our pension reforms have already given hundreds of thousands of people access and responsibility over their hard-earned savings and we will continue to make sure that the pension freedoms work well for everyone.

“We will work with our partners, such as Pension Wise and the Department for Work and Pensions, to ensure consumers are protected and that there is clear information to help people understand their options.”

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